Chinese Credit cards

China Credit Card Applications Promise Competitive Market

Though the first Chinese credit card appeared in the country in 1985, and spread its applications through Visa International, still in 2006 some big financial experts insisted that China wasn't yet ready to join such credit card empires as the USA and UK.

China's lending market was considered to be rather shaky and unviable and world-famous credit card giants such as Visa, MasterCard and American Express might turn out as fools in their game of banking. But credit card companies are no naïve fools and are never likely to become such and their trust in the Chinese credit card is paying for itself now.

Thanks to Visa and MasterCard companies and international banks that persisted in pushing their credit services in what they considered to be a promising housing for credit card industry, China is today a perfect place for making a B2B or B2C.

What's good is that local banks are eager to rival international banks in extending their operations and it makes the credit card market highly competitive. If you ask any professional financial specialist, he'll tell you that such competition cannot but positively tell on the credit card terms generally offered in the country.

Do not think it wrong, though. You won't be offered such low APR credit card as you find in the USA, for example - Chinese credit card market is not ready yet to burry its customers with best credit card applications available in the States.

It is a fact that the number of credit cards issued in China is steadily growing but the issuance is regulated by the government and aimed at mostly officials and executives who can demonstrate influence and political power. Also, credit cards have become a facility for Chinese civil officials to provide for transparency in work-related expenses.

There is still another thing that hampers the fast development of credit card market - the absence of credit bureaus that determine an applicant's credit worthiness. Thus, there' no unquestioned guarantee that the money lent will be repaid. It's natural then that companies look for evidently eligible credit consumers to make most profitable credit card deals.

In connection with this, we still can't say that Chinese credit cards are primarily common customers oriented but it is believed that changes are yet to come. A recent research already shows that the percentage of purchases made with credit cards is continually growing and the overall sum of credit card transactions has increased by nearly 80%.

What's more, in June this year China signed a mutually beneficial agreement with Turkey for the purpose of extending and enlarging its credit card operations abroad. Having Turkey's Garanti Bank credit card in the pocket, a Chinese tourist or businessman can withdraw cash from ATMs and even make transactions.

Signing the agreement, the two countries hope to promote B2B cooperation in the first place and it is also hoped that the bilateral agreement will help put money transfer between China and Turkey on the rise.

Well, China seems to have smoothly joined the developed countries in their highly profitable credit card business. There's only one thing to do yet - turn the business into a profitable deal for average middle income customers.

Jennifer Brown

Jennifer Brown, an external business consultant working with a Fortune 500 company, has years of experience to her credit. Despite having a busy schedule through the day, she takes time out to write articles dealing with credit cards, payday loans and other financial aspects. She has completed her Bachelor degree in Financial Services from Columbia University and has been actively involved in various activities for the betterment of society.